August 11, 2008 TPTF EDS Sequence and Durations Discussion Daryl Cote

2 2 TPTF8/11/2008 Objective The EDS team is soliciting TPTF’s comments on our go-forward testing sequence and durations as to ensure sufficient testing time is the new plan.

3 3 TPTF8/11/2008 How we developed the new sequence and durations Project 1 Project 2 Project 3 EDS Integration Test Core and Supporting Projects (FAT)  FAT milestone put into time-boxed releases  These will be integration tested and pushed to EDS Project milestone Indicates project milestones in a release Cross project dependency Legend

4 4 TPTF8/11/2008 ‘As-is’ EDS Sequence and Durations

5 5 TPTF8/11/2008 Proposed Sequence and Duration This timeline illustrates preliminary durations for the remainder of EDS testing (not the entire program), a Texas Nodal Market Implementation Date is not implied in this diagram.

6 6 TPTF8/11/2008 Month 1 – Restart EDS 4, continue EDS 2 & 3 EDS activities Execute SCED with the objective of publishing LMPs for 6 months Publish SCED reports (RT LMPs etc) Test communication of DAM inputs and outputs Execute DAM 2 days per week with Market Data Post AS Obligation, QSE Load Ratio Share, AS plan Issue DAM Awards and Notifications (Awarded AS, Awarded Energy bid etc) Publish DAM hourly reports (DAM LMPs, DAM MCPC etc) Conduct mock CRR annual auction Publish CRR auction results Outage Scheduler open to MPs for submissions Perform Outage Evaluation testing Publish Outage Scheduler reports (Approved outages, rejected etc) Publish Available Credit Limit on MIS Seek TPTF approval for test Network Model to be used for Settlements testing New Interfaces MP submission items on EIS V 1.16 DAM Awards and Notifications on EIS V 1.16 EMS to MMS interfaces for SCED EMS to MMS interfaces for DAM and RUC OS to EMS interface for Outage Evaluation CMM to CRR for credit limits CRR to CMM for CRR inventory, credit limit updates and bilateral trade requests Registration – MMS, CMM – Resource parameters and ownership Alerts and Notices – Emergency notices Metrics C010 – Verify Credit Calculations

7 7 TPTF8/11/2008 Month 2 – Execute DAM and RUC, publish Settlements for DAM and conduct CRR auction EDS activities Single Entry Model Go-Live Continue execution of SCED for publishing LMPs for 6 months and publish reports Continue execution of DAM 2 days per week with Market Data, issue notifications and publish results Execute HRUC and DRUC 2 days per week with Market Data Publish RUC results –Committed and decommitted units –Active binding transmission constraints used in RUC Publish Settlement Statements, Invoices and Extracts for DAM –DAM Settlement and Resettlement Statement –CRR Balancing Account Invoices –DAM Invoice –CARD Invoices –DAM Resettlement Invoice –DAM Late Fee Invoices –DAM Consolidated Operating Day Extracts –DAM Market Operating Day Extracts –Public Reference Data Extract –Settlement Input Data Extract Conduct NMMS validation rules testing with TSPs Conduct OS Performance test Publish test CRR annual auction results Conduct Integrated CRR monthly auction New Interfaces CRR to MMS for CRR ownership information CMM to MMS for Credit limits NMMS to OS for equipment list OS to NMMS for Outages S&B to MMS for Verifiable Costs MMS to S&B for DAM Settlements Registration – CMM, CRR – Resource parameters and ownership

8 8 TPTF8/11/2008 Month 3 – Execute DAM 5 days per week, publish RTM Settlement statements and conduct LFC tests EDS activities Continue execution of SCED for publishing LMPs for 6 months and publish reports Conduct 2 hour LFC test with CIM Conduct 8 hour LFC test with CIM Publish mock Integrated CRR auction results Execute DAM and DRUC 5 days per week, issue notifications and publish results Execute HRUC 4 days per week Begin SASM execution Issue SASM notifications –Awarded AS offers Publish SASM reports –SASM MCPC –Total Ancillary Service procured –Aggregated Ancillary Service Offer Publish Settlement Statements, Invoices and Extracts for RTM and DAM –RTM Initial, Final, True-up and Resettlement Statement –RTM Initial, Final, True-up and Resettlement Invoice –RTM Consolidated Operating Day Extract (RTM CODE) –RTM Market Operating Day Extract (RTM MODE) –Public Reference Data Extract (PRDE) –Settlement Input Data Extract Begin testing of Disputes submission process through UI and API New Interfaces MMS to S&B for RTM Settlements EMS CIM Importer NMMS to S&B for Resource parameters Metrics Verify CRR auction invoices (CO8)

9 9 TPTF8/11/2008 Month 4 – Test full market timeline for 7 days and settle market EDS activities Continue execution of SCED for publishing LMPs for 6 months and publish reports LFC test analysis and reporting of results to Market Participants Continue execution of DAM and DRUC 5 days per week, issue notifications and publish results Continue execution of HRUC 4 days per week Continue SASM execution Continue publishing of DAM and RTM Settlement Statements, Invoices and extracts Execute full Market timeline for 7 seven days Produce Settlement statements for the full market timeline One day dual entry of Outages into Zonal and Nodal systems New Interfaces Metrics Verify SASM (MO3) ERCOT staffed for Texas Nodal Operations (E8)

10 TPTF8/11/2008 Month 5 – Conduct 48 hour LFC test and conduct integrated CIM business process testing EDS activities Publish RT and DAM settlements for Full market timeline Execute 48 hour LFC test Execute EECP test Continue execution of SCED for publishing LMPs for 6 months and publish reports Continue execution of DAM and DRUC 5 days per week Continue execution of HRUC 4 days per week Continue publishing of DAM and RTM Settlement Statements, Invoices and extracts Deploy MMS with full functionality into EDS environment Conduct CIM business process testing 7*24 support of Nodal systems Validate EDW Compliance Data Access New Interfaces Alerts and Notices – full functionality Metrics Validate EDW Compliance Data Access (E11) Execute EECP test (EMO8) Settle market for 7 Days and provide appropriate extracts (CO1)

11 TPTF8/11/2008 Month 6 – Verify LMP quality and conduct DAM/RUC/SCED performance test EDS activities Continue execution of SCED for publishing LMPs for 6 months and publish reports Complete posting of LMPs for 6 months Continue execution of DAM and DRUC 5 days per week Continue execution of HRUC 4 days per week Continue publishing of DAM and RTM Settlement Statements, Invoices and extracts Continue integrated CIM business process testing Execute DAM/RUC/SCED performance test Conduct DST Test with Market Participants Begin verification of MIS compliance with Requirements Conduct fail-over test (s) New Interfaces Chunking logic for submitting large files Metrics Complete posting of 6 months of LMPs (MO5) Complete verification of SCED execution quality (MO4) Verify QSE Performance Monitoring Plan (E14) Verify TSP Performance Monitoring Plan (E15) ERCOT Operating Personnel and Facilities Readiness (MO7)

12 TPTF8/11/2008 Month 7 – 48 Hour full market timeline test and preparation for 168-Hour test EDS activities Continue DAM/RUC/SCED performance tests Execute DST test Execute 48 hours of full market timeline without Sev 1 or Sev 2 errors Complete verification of MIS compliance to Requirements Complete execution of Fail-over tests Complete verification of Dispute Process 7 day forecast validations/retraining Conduct test monthly CRR auction for 168-Hour test Begin 168-Hour Test Qualification - QSE declaration of intent to participate in Nodal New Interfaces Metrics ERCOT staff completes training (E1) Verify Voltage support functionality (EMO2) Verify DAM Settlement Statements (CO3) Zonal/Nodal Coordinated Settlement Operations (CO4) Verify RTM Settlement Statements (CO5) Verify RT Settlement Invoices (CO6) Verify DAM Invoices (CO7) MIS compliance test (E12) Validate EDW Access & Accuracy of Postings Required by the IMM and PUCT Rules (E7) Market Monitor Systems Capability (IMM1)

13 TPTF8/11/2008 Months 8,9 and 10 – Completion of 168-Hour test and the Go-Live Period Upon successful completion of the 168-Hour test, the Texas Nodal Go-Live Procedure will come into effect. Activities include Start of Go-Live Period Readiness declarations by ERCOT and Market Participants 1 st binding monthly CRR auction Go-Live Sequence 1 st binding SASM Nodal Go-Live 1 st binding DAM